TransCanada announced it will build, own and operate the Tamazunchale Pipeline extension in Mexico. Construction of the pipeline is supported by the award of a 25-year natural gas transportation service contract by the Comisión Federal de Electricidad (CFE), Mexico’s state-owned power company.

TransCanada expects to invest US$500 million in the pipeline and anticipates an in-service date in early 2014. The project will be 146 miles long and have contracted capacity of 630 MMcf/d. The pipeline will use a combination of 30- and 36-inch pipe and have 37 megawatts of installed compression.

The pipeline will originate at the terminus of TransCanada’s existing Tamazunchale Pipeline in the state of San Luis Potosi and extend through the states of Hidalgo and Queretaro where it will connect with Mexico’s national pipeline system and serve a CFE combined-cycle power generating facility near El Sauz, Queretaro.

“The Tamazunchale Pipeline Extension demonstrates our continued commitment to developing Mexico’s energy infrastructure to meet growing requirements for increased natural gas supply,” said Russ Girling, TransCanada’s president and CEO. “The pipeline represents one of the many low-risk energy infrastructure opportunities within our existing business lines that are continuously being developed by our company to help deliver long-term shareholder value.”

The company plans to continue to pursue future development opportunities in Mexico.